Expert Answers

Expert Answers

Question 1
Which of the following is a false statement?
1. A person who does not know of a reward offer can never claim it since how can one accept what one does not know of. 
2. For common law consideration to be legally sufficient, it does not necessarily have to consist of the payment of money or transfer of goods.
3. A promise by one party to pay another for refraining from performing a legal act is generally enforceable under the common law.
4. Normally, a court in the U.S. applying the common law of contract will be able to question the adequacy of consideration to see if the contract is a fair one.
Question 2
Pat and Don submit their dispute to binding arbitration. A court can set aside the arbitrator's award if
1. Don is not satisfied with the award.
2. Pat is not satisfied with the award.
3. the award involves at least $75,000.
4. the award violates public policy or if bad faith was involved. 
Question 3
The UCC applies to a mixed sale:
1. Whenever a sale of goods is a part of the transaction. 
2. Only if there is no service involved.
3. If the sale of the good is the predominant part of the transaction.
4. Only if the contract provides that the UCC applies.
Question 4
Which of the following is a false statement?
1. Only those consequences damages that are known or that are likely or reasonably foreseeable are recoverable.
2. Liquidated damages will be invalid if they are deemed to be excessive and thus a penalty.  
3. The mitigation of damages rule requires the non-breaching party to a contract to make a good faith effort to minimize his or her damages.
4. Specific performance is the main remedy used to make a party live up to his or her obligations under a personal services contract.
Question 5
A non-essential term of an offer under the common law may be the
1. Writing 
2. Parties
3. Price
4. Subject Matter

Question 6
Which of the following is a FALSE statement?
1. The tort of negligence does not apply to an employer hiring employees since there is usually a "50/50" chance that the employee will turn out to be a bad one. 
2. Under the doctrine of Premises Liability a landowner has the duty to warn his guests of dangers that the landowner is aware of or should have been aware of.
3. The tort of negligent infliction of emotional distress requires some type of physical harm or impact.
4. As a general rule there is no legal liability for nonfeasance, that is, not acting.
Question 7
A law passed by a state to give its courts’ jurisdiction over persons and businesses located in other states is known as:
1. Total jurisdiction statute. 
2. Venue statute.
3. Long-arm statute.
4. In personam statute.
Question 8
An oral contract in which Sally agrees to work for Jane for the rest of Jane's life is:
1. A guaranty contract.
2. Unenforceable under the Statue of Frauds because it cannot possibly be performed within one year. 
3. Enforceable under the Statute of Frauds.
4. A and C only.
Question 9
Which of the following is a true statement?
1. The Uniform Commercial Code governs contracts involving real property and personal property leases.
2. The adoption of the Uniform Commercial Code has completely eliminated the need for the common law in the area of contracts.
3. The Uniform Commercial Code only applies to a contract if the parties explicitly state so in their contract. 
4. The Uniform Commercial Code takes precedence over the common law of contracts regarding contracts for the sale of goods.
Question 10
Which of the following is a true statement?
1. A tort of battery occurs only if the victim suffers actual serious physical harm.
2. One cannot recover damages for emotional distress absent a showing of serious personal and physical injury.
3. An oral defamatory statement must be communicated to a third party to be actionable but not a written one.
4. An individual's right to privacy under the common law typically includes the exclusive use of his or her likeness. 
Question 11
According to Kant, morality is fundamentally based on:
1. What society believes is moral.
2. A determination of the greater good.
3. Reason and rationality.
4. What the law says is legal. 
Question 12
Consumer Products, Inc., asks its employees, many of whom are unionized, to apply the Utilitarian theory of ethics. This theory does NOT require
1. A choice among alternatives that will produce maximum social utility
2. A determination of what individuals will be affected by an action 
3. An assessment of the positive and negative consequences of alternative actions on individuals affected
4. The acquiring of the means of production and distribution by the workers.
Question 13
Which of the following is a false statement?
1. An oral defamatory statement must be communicated to a third party to be actionable, but a written one need not. 
2. An individual's right to privacy includes the exclusive use of his or her likeness.
3. Intentionally causing a party to break a contract may constitute the common law tort of wrongful interference with a contractual relationship.
4. Under the doctrine of strict liability in the U.S., a defendant may be liable for the results of his or her acts even if he or she did not intend those results.
Question 14
The release of one party to a contract and the substitution of another party for the released party is called:
1. A substitution by law. 
2. A summation.
3. A novation.
4. An adjudication.
Question 15
A plaintiff in a fraud case must prove the following except:
1. Justifiable Reliance.
2. False statement of a material fact.
3. Intent to Deceive.
4. Discovery of the falsehood within a reasonable time. 
Question 16
A major criticism of utilitarianism is:
1. Moral and ethical rules are too rigid and fixed over time. 
2. Some persons would take actions which they believe to be moral, but which most persons in a society believe to be immoral.
3. Decisions require the weighing and measurement of qualities and consequences which are not subject to precise determination and measurements.
4. Decisions are not allowed to take into account a particular person's station or place in society.

Question 17
Risk of loss passes in a sale of goods which does not involve a common carrier:
1. Upon tender of delivery for both merchant sellers and nonmerchant sellers. 
2. Upon tender of delivery for merchant sellers and when goods are received by the buyer in the case of nonmerchant sellers.
3. Upon tender of delivery for nonmerchant sellers and when goods are actually received by the buyer in the case of merchant sellers.
4. When goods are received by the buyer for both merchant sellers and nonmerchant sellers.
Question 18
Which of the following is a false statement?
1. To exercise the power of acceptance, the common law requires an offeree to accept the offeror's offer unconditionally and unequivocally. – 
2. The death of a party to a contract will always result in the automatic termination of that contract since it would not be right to burden the surviving spouse or other heirs with business matters.
3. The common law "mirror image" rule generally requires an acceptance of an offer to adhere exactly to the terms of the offer.
4. A counteroffer under the common law does terminate an offer.
Question 19
Which of the following is not a correct statement?
1. The common law of contracts governs all types of contracts in the U.S. without exception. – 
2. A contract is an agreement between two or more parties that can be enforced in court of law.
3. Pursuant to the objective theory of contracts, the intention to enter into a contract is determined by the objective facts that are interpreted by the "reasonable prudent person" standard.
4. The agreement component of a contract consists of an offer and an acceptance under the common law.
Question 20
Which of the following is true?
1. Juries issue verdicts and judges enter judgments. 
2. Juries can either issue judgments or verdicts.
3. The trial judge cannot change or overturn a jury's verdict once it has been issued.
4. If a case is appealed, the jury will return to hear the case again.
Question 21
Which of the following is a FALSE statement?
1. The E-Sign or Electronic Signature in Global and National Commerce Act is a federal law in the U.S. that makes electronic signatures equally as valid as written ones.
2. The Fair Use doctrine is an exception to copyright law.
3. Registration of a copyright with the U.S. Copyright Office is mandatory in all cases in order to have a valid and legally protected copyright. – 
4. The Digital Millennium Copyright Act states that an Internet Service provider is not liable for copyright infringement by its customers unless it was aware of its customers' violations.

Question 22
Which of the following statements is not true regarding the buyer's right to cover?
1. The buyer must cover.
2. The measure of damages in a cover is cover price less contract price.
3. Cover must be done in a commercially reasonable manner and without undue delay. – this is not true
4. Consequential damages can be recovered in addition to the cover damages.
Question 23
A problem with the Utilitarian ethical principle is that:
1. It is difficult to foresee the long-term consequences of an action. 
2. It is difficult to weigh and measure the good v. bad consequences of an action.
3. It is difficult to ascertain how the good should be distributed.
4. All are problems.
Question 24
Which of the following is a false statement?
1. A principal owes to his or her agent a duty to act in good faith.
2. If an agent's contract with a third party is required to be in writing, then the agent's authority from the principal to enter into that contract generally must be in writing.
3. An agent's authority to act on behalf of a principal derives exclusively from the agent's express actual authority.
4. A principal may confer authority on an agent by manifesting words or conduct to a third party. – this not true
Question 25
Which of the following is a false statement?
1. An option is irrevocable during the option period. – this is not true
2. An offer made in jest or as a joke where a reasonable person would conclude that it was made in jest or as a joke cannot result in a contract.
3. The offeror is the party to decide whether to accept the offer and thus make a contract.
4. A contract remains executor as long as any party to the contract has not fully performed.
Question 26
Which of the following is a true statement?
1. Third parties cannot acquire enforceable rights under a contract. 
2. The beneficiary of a life insurance policy is an intended third party beneficiary.
3. A party who wants to get out of a contract that he or she entered into because it was not as good a deal as originally thought of can successfully interpose the doctrine of unconscionability.
4. If a court finds that the subject matter of a contract is illegal, the court usually will undo the contract and place the parties back in the status quo.
Question 27
A non-public person in a tort defamation lawsuit must prove all of the following except:
1. There was an untrue statement made that impugned the plaintiff's character or reputation.
2. The statement contained a factual assertion and was not a mere opinion. – this is the exception
3. The statement was communicated by the defendant to at least one person other than the plaintiff.
4. The defendant definitely knew that the statement was false.

Question 28
Under freedom of speech in the United States:
1. All speech receives the same degree of Constitutional protection.
2. Some speech is not protected. 
3. Commercial speech receives no protection because it has a profit motive.
4. Most speech critical of the government can be restricted because it can be destabilizing.
Question 29
Instrumental values can be best described as:
1. Useless since they have on intrinsic worth.
2. Useful because they can be used as a means to produce or achieve other values or things of worth.
3. Useful only when they are legislated into law. 
4. None of the above.
Question 30
Under UCC warranty law, which of the following is a FALSE statement?
1. An express warranty can be based on a statement or affirmation of fact relating to the goods which becomes part of the basis of the bargain.
2. Implied warranties of quality cannot be disclaimed by such "catch-all" language, such as buyer takes the goods "AS IS," because to do so would be very unfair.
3. To disclaim the implied warranty of merchantability the exact word "merchantability" must be used in the disclaimer.
4. The law will require that any disclaimer of a warranty be conspicuous. – 
Question 31
A plaintiff in a fraudulent misrepresentation case must prove all of the following except:
1. Reasonable and justifiable reliance
2. False statement of material fact
3. Intent to deceive
4. Physical injury. 
Question 32
The distinguishing feature of a common law system is:
1. Requiring guilt to be proven beyond a reasonable doubt.
2. Using juries to decide cases.
3. Having both civil and criminal cases. 
4. Following precedent in making decisions.
Question 33
A minor good faith deviation or omission in an otherwise complete performance of a contractual obligation in a construction contract is known as:
1. Substantial performance.
2. Nonmaterial performance.
3. Nonessential performance.
4. Material performance. 

Question 34
In offering to sell amplifiers to X for her theater, Y intentionally misrepresents their capacity. In reliance, X buys the amplifiers. Y's statement is likely
1. duress.
2. fraud or deceit. 
3. puffery.
4. undue influence.
Question 35
Jim orally promises to work for Pat, and Pat orally promises to employ Jim at a rate of $500 a week. This contract must be in writing to be enforceable if Jim promises to work for
1. at least five years.
2. five years but either party can terminate the contract on two weeks' notice. 
3. less than a year.
4. life.
Question 36
X offers to sell Y a computer. Y sends an acceptance via the mail. This acceptance is generally effective when it is
1. in transit.
2. received. 
3. sent or dispatched.
4. written.
Question 37
The majority rule for the validity of a covenant-not-to-compete in an employment contract is that the covenant must be:
1. Reasonable as to time
2. Reasonable as to place
3. Necessary to protect a legitimate business interest of the employer 
4. All of the Above.
Question 38
Eagle Corporation contracts to sell to Frosty Malts, Inc., six steel mixers for $5,000. When Eagle fails to deliver, Frosty buys mix¬ers from Great Company, for $6,500. Frosty's measure of damages is
1. $6,500.00 
2. $5,000.00 
3. $1,500 plus incidental damages. 
4. nothing.
Question 39
Which of the following is a false statement?
1. Procedural due process prevents the government from taking a person's property if the person objects strenuously. – 
2. The Equal Protection Clause requires that similarly situated persons be treated similarly by the government.
3. As a general rule regarding free speech rights, if a less restrictive means is available for the government to achieve its goals, the government must use the less restrictive alternative.
4. Obscenity is not considered to be protected speech.
Question 40
Which of the following is a false statement?
1. The breach of duty element in the test for negligence liability in the U.S. is governed predominantly by the reasonable person standard. – 
2. The doctrine of res ipsa loquitur can apply if an event causing the harm normally does not occur in the absence of negligence.
3. A battery occurs only if the victim suffers actual serious physical harm, that is, the victim is "battered."
4. One may be able to recover damages for emotional distress in a tort lawsuit for negligence.
Question 41
A contract provision that seeks to relieve a party to the contract from liability is known as:
1. An executory clause.
2. An exculpatory clause.
3. A mitigating clause. 
4. A liquidated damages clause.
Question 42
Duties under a contract:
1. Are freely assignable under all circumstances.
2. Can be delegated, but only if there is a signed writing.
3. May be delegated without assigning rights.
4. May be delegated only if there is a corresponding assignment of rights. 
Question 43
Which of the following is a true statement?
1. For an express warranty to be created the exact words "warrant" or "guarantee" must be used. 
2. A statement that a trailer has a capacity of 2000 pounds would likely be treated as a mere opinion and thus could not become a warranty.
3. In order to be the basis of the bargain in a sale of goods transaction, a warranty must have been the sole reason for the purchase of the product.
4. The implied warranty of merchantability includes a warranty that if goods are sold in bulk or in groups they must be in the medium range of quality.
Question 44
A novation is best described as an example of
1. Illegal activity
2. A third party beneficiary contract
3. A license
4. An assignment and delegation combined 
Question 45
Which of the following is a true statement?
1. Alternative dispute resolution is usually part of the traditional judicial litigation process.
2. There is a single court system shared by all the states and the federal government in the United States.
3. State appellate courts when they review trial court decisions usually listen to new testimony from witnesses or view new evidence related to the case. 
4. States typically have an intermediate appellate court between the trial court level and the state supreme court.
Question 46
Which of the following is true about punitive damages?
1. They are generally not available for breach of contract claims. 
2. They are awarded only if consequential damages are also awarded.
3. They are awarded where specific performance is not available.
4. Their purpose is to give the nonbreaching party the benefit of the bargain.
Question 47
In order to be enforceable, a covenant-not-to-compete must be reasonable in each of the following aspects except:
1. Length of time the restriction is in effect.
2. Scope (i.e. interests protected) by the restriction.
3. Amount paid to the one who gives up the right to compete. 
4. Geographic area of the restriction.
Question 48
According to ethical relativism,
1. There are no moral standards which are universally true.
2. Morality is societal-based.
3. Different societies have different views as to what is right and wrong.
4. All are true. 
Question 49
Norman's best criticism of Utilitarianism is that it
1. Requires a prediction of consequences
2. Requires a measuring and weighing of consequences 
3. Is difficult to determine what a particular society's moral norms are
4. Can legitimize morally pain and suffering if a greater good is achieved.
Question 50
The Commerce Clause in the Constitution gives the federal government the power to regulate commerce which:
1. Actually crosses state lines only.
2. Affects interstate commerce or is conducted with foreign nations or Indian tribes.
3. All commerce. 
4. The states have chosen not to regulate.
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